Wednesday, September 28, 2022
HomeLife InsuranceUBS, Wealthfront Cancel $1.4B Deal

UBS, Wealthfront Cancel $1.4B Deal


When the deal was introduced on Jan. 26, Wealthfront had some $27 billion in property underneath administration and over 470,000 shoppers within the U.S. 

In his evaluation earlier this yr, Nexus Strategist President and CEO Tim Welsh concluded that the common degree of property per shopper account was about $57,000. “Wealthfront’s pricing schedule of 25 foundation factors (the primary $10,000 being ‘free’) implies that UBS is paying $3,000 for simply $117 of annual recurring income (ARR), which is problematic when checked out on an ROI foundation,” he defined in a column for ThinkAdvisor.

Late Friday, Wealthfront CEO David Fortunato stated in an announcement: “In the present day we introduced that along with UBS we determined to terminate our pending acquisition and can as an alternative stay an unbiased firm.”

“I’m extremely enthusiastic about Wealthfront’s path ahead as an unbiased firm and am proud to share that because of the onerous work of our group and the belief you set in us, we can be money stream optimistic and EBITDA worthwhile within the subsequent few months,” Fortunato defined.

The information concerning the cancelled Wealthfront deal comes 4 years after UBS shut down SmartWealth, a digital wealth administration platform. In August 2018, UBS offered the know-how to robo-advisor SigFig, which the Swiss-based financial institution had invested in two years earlier.

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